Ultimate snowboards is in need of 400000 to purchase a new


Ultimate Snowboards is in need of $400,000 to purchase a new buffing machine. Funds can be obtained from a bank at 8 percent discount interest for one year.

a. How much will Ultimate have to borrow?

b. What is the effective rate on this loan?

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Financial Management: Ultimate snowboards is in need of 400000 to purchase a new
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